A soft drink bottler incurred the following factory utility

A soft drink bottler incurred the following factory utility cost: $3,461 for 1,000 cases bottled and $3,570 for 1,600 cases bottled. Factory utility cost is mixed cost containing both fixed and variable components. The variable factory utility cost per case bottled is closet to:

$3.46
$0.18
$2.23
$2.16

Solution

Variable factory utility cost per case bottled = (3570-3461)/(1600-1000)= 0.18 Option 2 is correct